QLTA Profile
The iShares Aaa - A Rated Corporate Bond ETF is designed to offer investors targeted exposure to high-quality corporate bonds. The fund commits at least 80% of its total assets to the component securities of its underlying index, which represents a segment of the broader Bloomberg U.S. Corporate Index. This underlying index focuses specifically on corporate bonds that are rated within the Aaa to A range, which signifies high credit quality and relatively low risk of default.
To track the performance of the underlying index closely, the fund will allocate a minimum of 90% of its assets to fixed-income securities that fall within the scope of the index. The securities included are those that meet the criteria of being rated Aaa, Aa, A, or Baa by major credit rating agencies, and are denominated in U.S. dollars. This strategic allocation helps ensure that the fund's performance closely mirrors the performance of the high-quality corporate bond segment it aims to represent.
The Bloomberg U.S. Corporate Index, a key benchmark for this ETF, is a comprehensive measure of the performance of U.S. dollar-denominated, taxable corporate bonds. The index specifically targets bonds rated Aaa to A, reflecting the higher end of the credit quality spectrum. This subset of the broader index is utilized to capture the stability and lower risk associated with higher-rated corporate bonds, making it suitable for investors seeking lower-risk fixed-income investments.
By investing in this ETF, investors gain access to a diversified portfolio of high-quality corporate bonds, which can provide a stable income stream and lower volatility compared to lower-rated bonds. The fund's focus on Aaa to A rated securities aims to balance risk and return by concentrating on bonds with strong credit profiles. As such, the iShares Aaa - A Rated Corporate Bond ETF is designed to appeal to investors looking for a conservative fixed-income investment option with a focus on high credit quality.
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